The Hybrid Approach to Scaling Technology
- Krizza Levardo
- Apr 2
- 3 min read
As small and mid-sized businesses (SMBs) grow, so does the complexity of their technology needs. One of the most critical decisions SMBs face is whether to buy off-the-shelf solutions or build in-house capabilities. At FractionalTalent, we believe that the most effective approach isn’t choosing one over the other—but finding the right hybrid balance.
Defining Core Technology Competencies
Before making a buy vs. build decision, SMBs must first define their core competencies. Companies should identify the areas where they need to excel in-house and where they can leverage external partners.
Core Competencies to Build In-House: Proprietary technology that differentiates the business, such as AI-driven analytics or specialized software solutions.
Functions to Outsource: Non-core tasks like IT service desk support, general infrastructure maintenance, and SaaS solutions that don’t require customization.
By focusing on their strengths and strategically outsourcing the rest, SMBs maximize efficiency while keeping their technology team focused on innovation and value creation.
The Hybrid Model: Why SMBs Need Both Buy and Build
Relying solely on either buying or building technology is rarely sustainable. Most growing businesses eventually land in a hybrid model—combining both approaches to optimize scalability, security, and cost-effectiveness.
When to Buy Technology:
Standardized software like CRM, ERP, or cloud storage solutions.
Tools that require rapid deployment with minimal customization.
Cost-effective solutions that would be expensive to build in-house.
When to Build In-House:
Proprietary applications that give the business a competitive edge.
Systems requiring deep integration with internal workflows.
When data privacy, security, or regulatory compliance requires full control over the tech stack.
Finding the right mix ensures SMBs remain agile, scalable, and competitive.
Governance, Security, and Compliance: The Hidden Factors in Scaling
While technology decisions often focus on functionality and cost, security, governance, and compliance play an equally important role. At FractionalTalent, we emphasize key areas that growing SMBs must address:
Attack Surface Management – As companies scale, their digital footprint expands, increasing security risks. Understanding where assets are exposed is critical to prevent breaches.
Technology Governance Boards – Establishing an internal governance board ensures that tech investments align with business objectives, compliance standards, and security best practices.
Compliance-Driven Decisions – Regulations such as GDPR, HIPAA, and ISO 42001 influence whether a company should buy or build certain technologies to ensure data protection and legal adherence.
Scaling Smart: Steps for SMBs to Adopt a Hybrid Technology Strategy
For SMBs looking to optimize their technology approach, here’s how to implement a hybrid buy vs. build model effectively:
Define Core Business and Technology Strengths – Determine where in-house expertise provides strategic advantage and where external solutions are more practical.
Assess Long-Term Costs and Scalability – Weigh the total cost of ownership between off-the-shelf software and custom development.
Prioritize Security and Compliance – Ensure all technology investments align with regulatory requirements and cybersecurity best practices.
Adopt a Governance Framework – Form a Technology Governance Board to oversee decision-making and alignment with company goals.
Conclusion
Scaling technology isn’t just about adding tools—it’s about making the right strategic choices. By adopting a hybrid buy vs. build approach, SMBs can optimize costs, improve security, and enhance their competitive edge. At FractionalTalent, we help businesses navigate these complexities, ensuring technology remains a growth enabler, not an obstacle.
Is your SMB ready to scale the right way? Let’s build a technology roadmap that aligns with your business needs.
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